Business Planning Through Performance Management

In 2017, Sveaskog set a clear priority: to reach an operating profit of at least 1,200 MSEK.
They not only met that target — they exceeded it by 4%, delivering an additional 48 MSEK. Here’s how performance management helped make it happen.

With TIC’s support, we quickly established a common language and methodology for a unified approach to business management across different levels of the company.

Per Matses, former CEO
Sveaskog

The Challenge

Focus and Financial Performance

Sveaskog is Sweden’s largest forest owner, managing around 14% of the country’s total forest area. Its business includes supplying timber, pulpwood, and biofuels to key industries, as well as leasing land for wind power, hunting, fishing, and ecotourism.

In late 2016, Sveaskog needed to sharpen its focus on key financial drivers, increase knowledge sharing across the company, and improve revenue and productivity. These efforts were critical to achieving the ambitious return targets set by the board in its business plan.

Sveaskog made a clear distinction between the framework in which the company operates — and the transformations it wants to achieve. This mindset helped create focus while ensuring the business had full oversight of its priorities.

Each year, executive leadership defines the company’s top priorities. These are then cascaded to functional and operational levels, giving the entire organization a shared understanding of what matters most and why.

Sveaskog also shifted the balance from over-planning to smarter follow-up. The business planning process now ensures that set priorities are tracked — and that activities are adjusted based on actual results.

The Solution

A Unified Approach

The Results

Profitable and Aligned

Sveaskog exceeded its primary 2017 objective — delivering an operating profit 4% above target, resulting in 1,248 MSEK.
Beyond the numbers, the company also saw major improvements in how performance is managed:

The controlling team now plays a more active role, contributing valuable analysis
Executive leadership is more aligned and engaged
Employees have a stronger connection to the company’s shared objectives
The follow-up process is now a structured part of ongoing business planning